The purpose of this Act is to appropriately regulate relations arising from fidelity guarantee.
[This Article Wholly Amended by Act No. 9363, Jan. 30, 2009]
The term "contract for fidelity guarantee" in this Act means the contract agreeing to bear liability for the compensation of relevant damage in cases where an employee inflicts damage on his/her employer due to any reason attributable to himself/herself in the course of performing his/her duties.
[This Article Wholly Amended by Act No. 9363, Jan. 30, 2009]
| Article 3 (Duration, etc. of Contract for Fidelity Guarantee) |
| (1) | A contract for fidelity guarantee with no fixed term shall be effective for two years from the date of its conclusion. |
| (2) | The duration of a contract for fidelity guarantee shall not exceed two years. Where any longer period is stipulated, it shall be shortened to two years. |
| (3) | A contract for fidelity guarantee may be renewed: Provided, That the renewed period may not exceed two years from the date of renewal. |
[This Article Wholly Amended by Act No. 9363, Jan. 30, 2009]
| Article 4 (Employer's Duty to Notify) |
| (1) | An employer shall notify, without delay, a fidelity guarantor in any of the following cases: |
| 1. | When the employer becomes aware of any apprehension lest an employee should cause any responsibility of the fidelity guarantor due to the employee's disqualification or negligent conduct in performing his/her duties; |
| 2. | Where any responsibility of the fidelity guarantor is to be aggravated, or his/her supervision becomes difficult, due to a change in an employee's duties or the place of performing his/her duties. |
| (2) | Where a fidelity guarantor fails to exercise his/her right to terminate a contract under Article 5, because the employer has been negligent in fulfilling his/her duty of notification under paragraph (1) intentionally or by gross negligence, the fidelity guarantor shall be exempted from his/her liability within the limit of the loss inflicted therefrom. |
[This Article Wholly Amended by Act No. 9363, Jan. 30, 2009]
| Article 5 (Fidelity Guarantor’s Right to Terminate Contract) |
A fidelity guarantor may terminate a contract when any of the following grounds exists:
| 1. | When the fidelity guarantor either receives a notification under Article 4 (1) from the employer, or the fidelity guarantor himself becomes aware that any ground falling under any subparagraph of Article 4 (1) exists; |
| 2. | Where the fidelity guarantor has compensated the loss inflicted by the intentional or negligent acts of an employee; |
| 3. | Other cases where important changes are made to the conditions which form the basis of contract. |
[This Article Wholly Amended by Act No. 9363, Jan. 30, 2009]
| Article 6 (Responsibility of Fidelity Guarantors) |
| (1) | Each fidelity guarantor shall be responsible for the compensation of any loss inflicted by the intentional or gross negligent acts of an employee. |
| (2) | Where fidelity guarantors are two or more, each of them shall bear liability in equal ratio in the absence of the explicit expression of intention. |
| (3) | The Court shall, in computing the fidelity guarantor’s amount of compensation, take account of whether any employer has been negligent in supervising his/her employee, the reasons for making the fidelity guarantee and degree of attention in doing so, change in the employee’s duties or status, and other circumstances. |
[This Article Wholly Amended by Act No. 9363, Jan. 30, 2009]
| Article 7 (Termination of Contracts for Fidelity Guarantee) |
Each contract for fidelity guarantee shall terminate upon the death of the fidelity guarantor.
[This Article Wholly Amended by Act No. 9363, Jan. 30, 2009]
| Article 8 (Prohibition of Disadvantage) |
Any special agreement in contravention of the provisions of this Act, which is disadvantageous to a fidelity guarantor, shall be null and void whatever its title or details are.
[This Article Wholly Amended by Act No. 9363, Jan. 30, 2009]
ADDENDA
| (1) | (Enforcement Date) This Act shall enter into force on the date of its promulgation. |
| (2) | (Application Example) This Act shall apply to the contract for fidelity guarantee first concluded or renewed after this Act enters into force. |
ADDENDUM<Act No. 9363, Jan. 30, 2009>
This Act shall enter into force on the date of its promulgation.